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Things to Consider When Choosing a Payroll Service

Payroll Service Information

Things to Consider When Choosing a Payroll Service

Once you choose a payroll service, you will be so glad you did. But make sure you pick the payroll service that is right for you!

In our previous article on what to look for in a payroll service, we offered some key questions to ask the payroll service before you sign up.

It turns out that list of questions was just a starting point in the payroll service selection process. Here are a few more questions worth asking before you choose a payroll service.

Does the Payroll Service Address Your Specific Needs?

If you've got needs that are specific to your business, make sure the payroll provider handles them. For example, the ability to handle tips or the ability to integrate into time and expense systems might be important to you - ask the payroll outsourcing company if they support them.

On the flip side, when a payroll provider supports every possible feature, it comes at a price to you. The system may be frustratingly complex and it may cost you more than is necessary. If your needs are simple, consider going with a provider that targets the vast majority of small businesses who don't have complex and unique requirements. You will pay less and the system will be easier to use.

How Will the Payroll Service Benefit Your Employees?

Some of the newer services offer web-based employee self-service. Employees can go to a password-protected Web site to view and print their pay stub. They can review their complete payroll history and personal information. This not only allows a small business to provide better service to its employees but it also alleviates the burden of responding to employee inquiries concerning payroll.

Does the Payroll Service Support Direct Deposit?

Direct deposit is great for business owners as it eliminates paper-handling and associated errors. Be sure your payroll provider can handle direct deposit.

Can The Payroll Service Support Multi-State or Multi-Locale Payrolls?

For some businesses, the ability to compensate employees who live in different states is important. For others, multi-state capabilities may not be needed now but might be in the future. Ask the payroll provider whether they can handle employees who are based in different states.

How Good Is the Provider's Payroll Expertise?

Most payroll providers have staff that spends their time keeping current on changes in payroll regulations or subscribe to an external service that does that for them. Still, it's worthwhile to ask your provider how they stay current on changes in regulations and withholding tables.

Even More Questions to Ask the Payroll Service

There are still a few other questions to ask about a payroll service. Check out our last article on how to choose a payroll service if you feel like you really want to do your due diligence on the payroll services you are considering.